REG - SolGold PLC - Key Milestones and Outlook for the Year Ahead

SolGoldAnnouncement

18/11/2024 07:00

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RNS Number : 5876M  SolGold PLC  18 November 2024

18 November 2024

SolGold plc

("SolGold" or the "Company")

Advancing Cascabel: SolGold Marks Key Milestones and

Provides Outlook for the Year Ahead

SolGold plc (LSE & TSX: SOLG) is pleased to provide a comprehensive review
of the Company's achievements over the past year, highlighting the substantial
progress that the Company has made on the Cascabel Copper-Gold Project and a
roadmap for the year ahead.

2024 Highlights: Building Foundations for a Strong Future

2024 has been a transformative year for SolGold, marked by substantial
progress as the Company advances its flagship Cascabel Project, achieving
several critical milestones. Key highlights include:

·      Cascabel Project Milestones: The landmark signing of the
Exploitation Agreement with the Government of Ecuador for the Cascabel Project
signifies a pivotal step toward development, securing key regulatory
support.(1)

The release of the Preliminary Feasibility Study ("PFS") showcased a
comprehensive view of the first 28 years (just 18 % of the resource) of the
substantial Alpala deposit. The PFS underscores Cascabel's vast potential as a
cornerstone, multi-generational copper mine with the capacity to deliver
long-term supply as global demand is projected to rise. The phased approach to
the mine plan reported in the PFS resulted in a reduction in initial capital
of US$1bn from the previous plan with an after-tax IRR of 24% and an
NPV(8%) of $3.2bn, based on metal prices of US$1,750/oz Au, US$3.85/lb
Cu, and US$22.50 Ag. Current consensus pricing for copper, gold, and silver
is significantly higher than those reflected in the PFS economic
model.(2,3) SolGold has identified numerous opportunities to expand the scope
of the resource and reserve at Cascabel and bring forward future cash flows
via Tandayama-Ameríca deposit inclusion, improvements in mining and milling
design and further optimising metallurgical recovery.

·    Financing Agreement: SolGold finalized a significant streaming
agreement with Franco-Nevada (Barbados) Corporation and Osisko Gold Royalties
("Franco & Osisko") for US$750m. This agreement supports the development
of the Cascabel project as it progresses, strengthening SolGold's financial
position providing, subject to achieving milestones, US$100m for the
advancement of Cascabel through permitting, feasibility, and securing further
development funding sources.(4) This strategic financing marks a significant
endorsement of Cascabel's long-term value, enabling effective resource
allocation to advance and de-risk the Project and a sizable portion of
development capital.

·      Exploration and Project Development: SolGold continued with
targeted regional exploration efforts, including identifying a major porphyry
target at the El Cielito Norte prospect on the Blanca-Nieves Project just 8 km
northwest of Cascabel, covering approximately 2.5 x 2.5 km, which is larger in
extent than the Alpala system to the south at Cascabel. In the epithermal gold
halo at the Florida site on the eastern side of Cielito Norte, recent channel
sample assays revealed high-grade gold results of 6.15m @ 7.46 g/t Au,
including 2.2m @ 21.1 g/t Au. These exploration efforts are advancing new
target areas toward drill-ready status, highlighting the potential for
integration with the Cascabel Project.(5)

Beyond Cascabel, SolGold has continued to advance its regional exploration
portfolio, actively identifying potential opportunities for advancing the
exploration efforts, including, among other options, joint ventures,
partnerships, and strategic divestments. Through these initiatives, the
Company is committed to unlocking value from the portfolio to enhance
shareholder value and SolGold's footprint in the global copper market.

·      Community and Sustainability Commitments: SolGold is proud of its
ongoing commitment to sustainability and community engagement. This year, the
Company furthered its community partnerships, aiming to create lasting
benefits for local stakeholders. Our progress on environmental, social, and
governance (ESG) fronts remains central to our approach to Project development
and to the Company as a whole.

Looking Ahead: Strategic Outlook for 2025

SolGold's outlook for 2025 is focused on key priorities to maximize
shareholder value and ensure sustainable Project advancement:

·      Advancing & De-Risking Cascabel: Following the PFS, the next
phase includes advancing high-priority studies in collaboration with
industry-leading experts, including G Mining Services Inc. This collaboration
will provide the technical expertise necessary to solidify Cascabel's Project
scope and timeline. Concurrently, ongoing geotechnical drilling is being
conducted to support infrastructure planning. Near-surface drilling at the
Tandayama-Ameríca deposit is planned for the near future to investigate a
plan for earlier cash flow delivery.(5)

In parallel, the Company is actively working on the permitting process to
facilitate timely approvals that will align with Cascabel's development
milestones. These efforts are fully funded and align with the Company's
strategy to de-risk and advance the Project to turn-key status.

·      Strengthening Strategic Partnerships and Funding Pathways:
Building on the strong financial platform established through the Franco &
Osisko deal, SolGold is well-positioned to explore further options to support
Cascabel's development.

·      Portfolio Optimization and Divestiture Strategy: Through ongoing
evaluation of joint venture and spin-out options for non-core assets, the
Company aims to focus on Cascabel while maximizing the potential of its
broader exploration assets.

·      Continued Focus on Sustainability: The Company will continue its
ESG initiatives, focusing on the communities around the Project site and
reinforcing SolGold's role as a responsible corporate citizen in Ecuador.
SolGold remains committed to sustainable development that is aligned with
global best practices.

Scott Caldwell, CEO of SolGold, commented: "This past year has been
transformative for SolGold. With significant advancements at Cascabel and
critical partnerships in place, we are moving into 2025 with a strong
foundation. We are excited about our strategic vision for the future and our
commitment to delivering long-term value for our shareholders, partners, and
communities. I would also like to thank shareholders and the board for its
support as the Company progresses."

1.    Refer to news releases dated 06 June 2024 on SEDAR+ and the
Company's website.

Link: 2024-06-06 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/w94d7ex)

2.     Refer to news release dated 16 February 2024 on SEDAR+ and the
Company's website.

Link: 2024-02-16 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/xze09lx)

3.     Refer to news release dated 12 March 2024 on SEDAR+ and the
Company's website.

Link:  2024-03-12 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/w0jjk8x)

4.     Refer to news release dated 15 July 2024 on SEDAR+ and the
Company's website:

Link: 2024-07-15 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/rndkknx)

5.     Refer to news release dated 19 March 2024 on SEDAR+ and the
Company's website:

Link: 2024-03-19 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/w1k933x)

 

CONTACTS

 Chris Robinson

 Director of Corporate Operations                                    Tel: +44 (0) 20 3807 6996

 & Communications

 Tavistock (Media)

 Jos Simson/Gareth Tredway                                           Tel: +44 (0) 20 7920 3150

ABOUT SOLGOLD

SolGold is a leading resources company focused on the discovery, definition
and development of world-class copper and gold deposits and continues to
strive to deliver objectives efficiently and in the interests of shareholders.

The Company operates with transparency and in accordance with international
best practices. SolGold is committed to delivering value to its shareholders
while simultaneously providing economic and social benefits to impacted
communities, fostering a healthy and safe workplace, and minimizing
environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange
(LSE/TSX: SOLG).

See www.solgold.com.au (http://www.solgold.com.au) for more information.
Follow us on X @SolGold_plc.

 

CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the
"Company") and its Officers may contain certain statements and expressions of
belief, expectation or opinion which are forward looking statements, and which
relate, inter alia, to interpretations of exploration results to date and the
Company's proposed strategy, plans and objectives or to the expectations or
intentions of the Company's Directors, including the plan for developing the
Project currently being studied as well as the expectations of the Company as
to the forward price of copper. Such forward-looking and interpretative
statements involve known and unknown risks, uncertainties, and other important
factors beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially different from
such interpretations and forward-looking statements.

Accordingly, the reader should not rely on any interpretations or
forward-looking statements, and save as required by the exchange rules of the
TSX and LSE or by applicable laws, the Company does not accept any obligation
to disseminate any updates or revisions to such interpretations or
forward-looking statements. The Company may reinterpret results to date as the
status of its assets and projects changes with time expenditure, metals prices
and other affecting circumstances.

This release may contain "forward looking information". Forward looking
information includes, but is not limited to, statements regarding the
Company's plans for developing its properties. Generally, forward looking
information can be identified by the use of forward-looking terminology such
as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".

Forward looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially
different from those expressed or implied by such forward looking information,
including but not limited to: transaction risks; general business, economic,
competitive, political and social uncertainties; future prices of mineral
prices; accidents, labour disputes and shortages and other risks of the mining
industry. Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended.  There can be no assurance that
such information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements.
Factors that could cause actual results to differ materially from such
forward-looking information include, but are not limited to, risks relating to
the ability of exploration activities (including assay results) to accurately
predict mineralization; errors in management's geological modelling and/or
mine development plan; capital and operating costs varying significantly from
estimates; the preliminary nature of visual assessments; delays in obtaining
or failures to obtain required governmental, environmental or other required
approvals; uncertainties relating to the availability and costs of financing
needed in the future; changes in equity markets; inflation; the global
economic climate; fluctuations in commodity prices; the ability of the Company
to complete further exploration activities, including drilling; delays in the
development of projects; environmental risks; community and non-governmental
actions; other risks involved in the mineral exploration and development
industry; the ability of the Company to retain its key management employees
and skilled and experienced personnel; and those risks set out in the
Company's public documents filed on SEDAR+ at www.sedarplus.ca. Accordingly,
readers should not place undue reliance on forward looking information. The
Company does not undertake to update any forward-looking information, except
in accordance with applicable securities laws.

The Company and its officers do not endorse, or reject or otherwise comment on
the conclusions, interpretations or views expressed in press articles or
third-party analysis.

 

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